The credit rating system that is familiar with us has changed to a credit score system since 21, and it has become a little advantageous to receive a credit card or bank loan. Let’s take a look at the reason for the change to the credit score system, how the credit score is converted compared to the existing credit rating, and how many credit scores are available for credit card issuance or loan.
index
1. What is a credit score system?
2. Credit Rating Scorecard
3. Free credit score inquiry and check
4. How to improve your credit score
1. What is a credit score system?
Since January 1, 2021, it has been introduced and applied in the financial sector, and it is a system that replaces the previous credit rating system by changing the personal credit status from the existing 1 to 10 grades to a maximum score of 1,000 from a minimum score of 1. 신용등급 점수
The reason why the Financial Services Commission decided to introduce the credit score system is to reduce this injustice as there are cases in which loans and card issuances are rejected even though there is no big difference in actual credit because the range between credit ratings is wide. 좋은뉴스
While introducing the credit score system, there are a few changes made in All Credit (KCB), a personal credit evaluation company, and Nice Evaluation Information.
1) Establishment of non-financial items
A new category of ‘non-financial’ was established to evaluate 8% of the total credit score. Non-financial items refer to communication charges and health insurance, and if you pay them well without overdue, they will be reflected in your credit score.
2) Reflection of check card use credit score
Previously, only credit card use was evaluated, but now debit card consumption patterns also affect credit scores.
3) Top percent of credit score reflected
As the credit score system changes, credit scores are important, but the top percentage of my score has also become important. For example, even if your credit score goes up from 800 to 900, if you fall from the top 10% to 20%, you could be penalized for loan review.
4) Card issuance and loan possible credit rating changed based on credit score
Credit cards that were issued only to grade 6 or higher were changed to a credit score system, and the Nice Evaluation Information (NICE) was changed to 680 points or more and the All Credit (KCB) to 576 points or more. For low-income financial products such as Sunshine Loan, change from credit rating 6 or lower to 744 points or less on Nice evaluation information and 700 points on All credit or less, and the preferential limit standard for medium-interest loans is 859 points or less on Nice evaluation information and 820 points on All credit at or below the existing 4th grade or lower Changed below.
Classification Credit Rating Credit Score System
Credit card
Issuance standard 6th grade or higher (NICE) 680 points or higher
(KCB) 576 points or more
Low-income financial products
Eligibility (Sunshine Theory) Grade 6 or lower (NICE) 744 points or lower
(KCB) 700 points or less
medium interest rate loan
4th grade or less (NICE) 859 points or less
(KCB) 820 points or less
2. Credit Rating Scorecard
In general, grades 1 to 3 are good credit, grades 4 to 6 are average credit, and grades 7 and below are classified as low credit. As you can see in the table below, the credit scores for each credit rating are different between Nice Evaluation Information and All Credit. In the case of Nice, scores from 1 to 3 are more generous than All Credit, but for grades 4 and below, All Credit gives better ratings than Nice evaluation information.
In general, it is seen that it is possible to use 1 financial sector up to grade 6, and it is difficult to use 1 finance because those with grades below 7 are holders of overdue records within the last 2 to 3 years.
Even in issuing a credit card, as I briefly explained earlier, credit card issuance may be restricted for grades below 7.
Nice evaluation information
(NICE) All Credit
(KCB)
Grade 1 900~1000 942~1000
Grade 2 870~899 891~941
Grade 3 840~869 832~890
Grade 4 805~839 768~831
Grade 5 750~804 698~767
Grade 6 665~749 630~697
7th grade 600~664 530~629
Grade 8 515~599 454~529
Grade 9 445~514 335~453
10th grade 0~444 0~334
3. Free credit score inquiry and check
In order to facilitate financial transactions, periodic management of my credit score is required.
There are two ways to check your credit score for free: using credit rating agency sites and using Toss, Kakao Bank, and Naver Pay apps.
1) Use of credit rating agency websites
The best way to check your credit score for free is through the Nice Jikimi website operated by Nice Evaluation Information and the All Credit website, where you can do credit inquiries three times a year for free. If you want to use it after 3 free times, you need to pay an annual fee after signing up for membership.
(1) Nice Jikimi
You can view your credit score by accessing Nice Jikimi and clicking Experience at the top of the homepage -> National Credit Inquiry menu.
https://www.credit.co.kr/
NICE Jikimi
No. 1 credit rating agency, nice credit habits that increase your credit score
m.credit.co.kr
Credit Score Rating Table – Nice Keeper Credit Score Inquiry
(2) All Credit
After accessing AllCredit at the address below, you can view your credit score for free by clicking the ‘Free Credit Inquiry for All Citizens’ menu located at the bottom right of the homepage.
https://www.allcredit.co.kr/
All Credit, Korea’s representative credit information established and used by financial institutions
In All Credit, personal credit score inquiry, credit management, and credit score increase for financial institutions are available. From free credit score inquiry, card, loan usage status, overdue history check, credit information change alarm, for rating improvement
www.allcredit.co.kr
Credit Score Rating Table – All Credit Credit Score Inquiry
2) Use of Toss, Kakao Bank, and Naver Pay apps
Unlike credit rating companies, you can view your credit score for free and unlimited times in the Toss or Kakao Bank applications.
(1) Toss
The good thing about the Toss app is that it shows the credit scores of both the Nice evaluation information and All Credit companies at once, so it’s convenient to manage your credit scores.
Download Toss App
Toss – Apps on Google Play
Fast and safe remittance, all my financial status and transaction history at a glance, and even the opening of various financial products that I need. All with one toss.
play.google.com
Access the app, click All in the bottom right corner, and then click My Credit Score.
If you enter the password you set, you can check your All Credit (KCB) and Nice Evaluation Information (NICE) scores at once at the top of the My Credit Score menu.
Credit Score Rating Table – Toss App
Credit Score Rating Table-Toss App-Credit Score Inquiry
Credit Score Rating Table-Toss App-My Credit Score
(2) Kakao Bank
Unlike Toss, Kakao Bank can only query All Credit scores.
Download Kakao Bank App
Kakao Bank – Apps on Google Play
Deposit, installment savings, loan, overseas remittance, check card, meeting bankbook, and even my credit information with one Kakao Bank app
play.google.com
After accessing the Kakao Bank app, press the three dots at the bottom right.
On the next screen, click My credit information in the middle and enter your password to check your All Credit (KCB) credit score.
Credit Score Rating Table – Kakao Bank App
Credit Score Rating Table – Kakao Bank App – Credit Score Inquiry
Credit Score Rating Table – Kakao Bank App – My Credit Score
(3) Naver Pay
The Naver Pay app can only check the Nice evaluation information and credit score.
Download Naver Pay App
Naver Pay – Apps on Google Play
The moment you need Naver Pay, use the Naver Pay app now. Offline payment, membership accumulation, and free remittance are all easy and fast with Naver Pay App.
play.google.com
Open the Naver Pay app and click the three dots at the bottom right.
On the next screen, click Credit Management in the My Assets menu and press the password to check the Nice Evaluation Information credit score.
Credit Score Rating Table – Naver Pay App
Credit Score Rating Table-Naver Pay App-Credit Score Inquiry
Credit Score Rating Table-Naver Pay App-My Credit Score
4. How to improve your credit score
1) Proper use of credit and debit cards
It is good to raise your credit score by using about 40% of your credit card limit. We recommend that you set the limit for each card as high as possible and pay within 40%.
As explained earlier, as the credit score system changes, the use of a debit card also has a great impact on your credit score. If you use more than 300,000 won per month, it will help a lot to increase your credit score, so please make sure to use your check card.
2) Utilization of utility bill and telecommunication fee payment details
You can improve your credit score by submitting your utility bill and communication bill payment details for the last 6 months to the credit rating agency. How to submit your payment history is provided in the ‘Raising Credit Score’ menu under the Toss, Kakao Bank, and Naver Pay apps described above, so we recommend submitting it periodically.
3) Reorganization of existing loans
If you repay the loan you received steadily without arrears, you will receive a message that your credit score has risen. In particular, if you have a loan from 2nd or 3rd finance, you can quickly recover your credit score if you repay this before the 1st finance loan.
If you raise your credit score in the same way as above, the following things will get better.
Lower interest rates and higher loan limits.
Ease of issuance of new credit cards.
You can request a lower interest rate on your existing loan based on your improved credit rating.
We have explained how to improve credit score system, credit score score table, credit score free inquiry, and credit score above. Steady credit score management is a very important factor for a healthy financial life. Please refer to the details explained and help you manage your credit score.